Policy and Planning Guidance for Community Transition Activities

DEPARTMENT OF ENERGY

Policy and Planning Guidance for Community Transition Activities

AGENCY: Office of Worker and Community Transition, Department of

Energy.

ACTION: Notice of interim guidance and opportunity for public comment.

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SUMMARY: The Department of Energy today publishes for public comment

Interim Guidance for Community Transition Activities that has been

issued primarily for the benefit of field organizations and community

reuse organizations responsible for implementing and administering a

financial assistance program to alleviate the adverse impact of

downsizing defense nuclear facilities on affected local economies.

DATES: Written comments (7 copies) are due on or before April 8, 1997.

The interim guidance is effective March 10, 1997.

ADDRESSES: Comments must be submitted to: U.S. Department of Energy,

Office of Worker and Community Transition, WT-1, 1000 Independence

Avenue, SW, Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Swichkow, U.S. Department

of Energy, 1000 Independence Avenue, SW, Washington, DC 20585, (202)

586-0876.

SUPPLEMENTARY INFORMATION:

I. Background

Pursuant to the Atomic Energy Act of 1954 (AEA), the Department of

Energy (DOE) owns defense nuclear facilities in various locations in

the United States that are operated by management and operating

contractors. As a result of the end of the Cold War, many of these

facilities are undergoing work force restructuring that often has a

significant impact on local economies. The Atomic Energy Act of 1954

contains broad authority to adopt and carry out policies, subject to

the availability of appropriations, for downsizing these facilities and

for alleviating the adverse impacts on affected local communities. 42

U.S.C. 2201.

Section 3161 of the National Defense Authorization Act for Fiscal

Year 1993, 42 U.S.C. 7274h, provides additional and specific authority

for DOE to provide impact assistance to communities that are adversely

affected by work force restructuring. Section 3161 further requires DOE

to coordinate the provision of such assistance with programs carried

out by the Departments of Labor, Commerce, and Defense. In devising a

local impact assistance program under section 3161, DOE has chosen to

follow the example of the Department of Defense under the Defense

Economic Adjustment, Diversification, Conversion, and Stabilization Act

of 1990 (Pub. L. 101-510) which is referenced in section 3161. Like the

Department of Defense, DOE has developed a financial assistance program

that, for the most part, consists of awards to broadly representative,

community reuse organizations (CROs) who either expend or sub-award the

funds for projects to stimulate the local economy under an approved

Community Transition Plan developed with public input. CROs may be

governmental or non-governmental organizations. If a CRO is non-

governmental and applies for financial assistance, it would have to be

organized under local law and be able to enter into, and assume the

obligations of a DOE financial assistance agreement. Although section

3161 does not require CROs, DOE use of such organizations is consistent

with the Congressional requirement to coordinate the provision of local

impact assistance, as appropriate, with the Department of Defense

programs under the Defense Economic Adjustment, Diversification,

Conversion, and Stabilization Act.

The award and administration of DOE financial assistance agreements

is subject to generally applicable regulations set forth at 10 CFR part

600. The interim guidance in this notice supplements those regulations

and provides a general decision making framework to guide the exercise

of discretion by DOE field organizations. Issuing policy in the form of

guidance allows for greater flexibility to modify policy if the facts

and circumstances warrant modification.

Various aspects of the interim guidance appeared previously in

DOE's August 24, 1994, Report on the Department of Energy's Worker and

Community Transition Program. Today's notice will clarify the roles and

responsibilities of DOE Headquarters, DOE field organizations, and

CROs. The interim guidance is subject to revision in light of public

comments received in response to this notice.

II. Description of Key Provisions

Although this notice contains policies applicable to funding

decisions in DOE Headquarters, for the most part, it contains interim

guidance to DOE field organizations on economic development activities

of CROs, approval of CRO plans to expend funds, evaluation criteria for

funding decisions, CRO performance measures and reporting.

Much of the interim guidance is self-explanatory. This document

highlights policy decisions embodied in various provisions of the

interim guidance that may be of interest to members of the public.

First, the financial assistance is targeted on communities

substantially impacted by work force restructuring plans under section

3161 for ``defense nuclear facilities'' which are listed in Appendix B

to the interim guidance.

Second, the CROs are intended to be broadly and fairly

representative of local community interests. To that end, the interim

guidance contains minimum evaluation criteria at paragraph II.C.3 for

approving CROs that all DOE field organizations should follow. The

interim guidance also provides for application of the conflict of

interest avoidance policy in 10 CFR 600.142 to all subagreements under

a financial assistance agreement including, but not limited to,

subcontracts, subgrants, loans, etc.

Third, the interim guidance provides for start-up, planning,

administrative, and project financial assistance, and indicates the

range of amounts of assistance for each type of activity. These ranges

are based on experience with pilot activities financed by local impact

assistance grants already awarded under section 3161. The evaluation

criteria provide for consideration of cost-sharing offered by an

applicant. However, cost-sharing is not a requirement because DOE does

not believe Congress intended that assistance be denied for proposals

from sources who are unable to offer cost sharing.

Fourth, consistent with DOE's experience in this program, the

interim guidance provides for program and project assistance for

sources other than CROs. These provisions are useful because some CROs

prefer to serve in an advisory role in the selection of projects

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rather than being a direct financial assistance recipient.

Fifth, the interim guidance refers to a broad array of programs

that have been funded by past awards and thereby indicates the range of

possibilities for future awards and sub-awards. Among the types of

programs a CRO could finance are small business incubators, venture and

risk capital investments, training seminars, and revolving loans funds.

With respect to such loans, the interim guidance provides a termination

date of five years from the first award. A terminal date is desirable

to facilitate closeout under 10 CFR part 600 and to limit the period

for an assistance agreement to the amount of time necessary to mitigate

the effects of downsizing on the local economy.

Sixth, the interim guidance provides for development of performance

measures and periodic reporting under 10 CFR part 600 to assess the

effectiveness of the program (see Appendix C). While there is some

burden in complying, the burden is justified by the need to determine

that taxpayer dollars are being expended effectively to achieve the

Congressional objective of alleviating the impact of work force

restructuring on affected local communities. DOE anticipates that the

information will be useful in supporting budget requests, reporting to

Congress, and responding to inquiries, if any, from Congress' General

Accounting Organization and DOE's Inspector General.

III. Review Under Executive Order 12866

This action has been determined not to be a ``significant

regulatory action'' under Executive Order 12866, ``Regulatory Planning

and Review'' (58 FR 51735, October 4, 1993). Accordingly, it was not

subject to review by the Office of Information and Regulatory Affairs

of the Office of Management and Budget.

IV. Review Under the National Environmental Policy Act

Pursuant to the Council on Environmental Quality Regulations (40

CFR parts 1500-1508), DOE has established guidelines in 10 CFR part

1021 for its compliance with the provisions of the National

Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321, et seq.).

Pursuant to Categorical Exclusion A6 in Appendix A of Subpart D to 10

CFR part 1021, DOE has determined that this action is categorically

excluded from the need to prepare an environmental impact statement or

environmental assessment.

V. Congressional Notification

Pursuant to the Small Business Regulatory Enforcement Fairness Act

of 1996, DOE will send a report regarding promulgation of this notice

to Congress prior to its effective date. 5 U.S.C. 801.

VI. Opportunity for Public Comment

Interested persons are invited to submit data, views, or arguments

with respect to the policies set forth in this notice. Seven (7) copies

of written comments should be submitted to the address indicated in the

ADDRESSES section of this notice. A copy of the comments received in

response to this notice will be available for public inspection in the

Department of Energy Freedom of Information Reading Room, 1E-190,

Forrestal Building, 1000 Independence Avenue SW., Washington, D.C.,

20585, between the hours of 9 a.m. and 4 p.m., Monday through Friday,

except Federal holidays. Late-filed comments will be considered to the

extent that time allows. Any person submitting information which that

person believes to be confidential and which may be exempt from public

disclosure should submit one complete copy, as well as an additional

copy from which the information claimed to be confidential has been

deleted. The Department of Energy reserves the right to determine the

confidential status of the information or data and to treat it

accordingly. The Department of Energy's generally applicable procedures

for handling information which has been submitted in a document and may

be exempt from public disclosure are set forth in 10 CFR 1004.11.

Issued in Washington, D.C., on January 17, 1997.

Robert W. DeGrasse, Jr.,

Director, Office of Worker and Community Transition.

For the reasons stated in the preamble, the Department of Energy

hereby promulgates the following interim policy, as set forth below.

Interim Guidance for Community Transition Activities

Table of Contents

I. Introduction

II. Program Scope

A. General

B. Allowable Uses of Funding

C. Eligibility and Funding Recipients

D. Types of Assistance

1. Start-up Assistance for CROs

2. Planning Assistance for CROs

3. Operational Assistance

4. Community Transition Program and Project Assistance

III. Roles and Responsibilities

A. The Secretary of Energy

B. The Director, Office of Worker and Community Transition

C. Department Field Organizations

D. Community Reuse Organizations

IV. Program Planning

A. General

B. Development of the Community Transition Plan

C. Department Field Organization and Office Reviews

D. Economic Development Administration and the Peer Review Board

E. Office of Worker and Community Transition Review and

Decisions

V. Evaluation Criteria for Review of Projects and Programs

VI. Community Transition Plans

A. Purpose

B. General

C. Community Transition Plan Components

1. Planning Analysis

2. Stakeholder Involvement

3. Prioritized Projects

VII. Performance Measures

A. Purpose

B. Guidance

C. Model

D. Areas to Address

VIII. Reviews

A. Financial Management Reviews

1. General

2. Purpose

3. Procedures

B. Program Reviews

Appendices

A. Office of Worker and Community Transition Contacts

B. Listing of Defense Nuclear Facilities

C. Progress Report Format

D. Requirement for Financial Assistance--10 CFR Part 600

INTERIM GUIDANCE FOR COMMUNITY TRANSITION ACTIVITIES

I. Introduction

The end of the Cold War has reduced the country's need for national

security activities. As a result, the Department of Energy's (the

Department) nuclear weapons production capacity is decreasing. The

Department is accomplishing this by reconfiguring, downsizing, and

closing many of its facilities. Since the Department realizes that

these actions may adversely affect the communities nearby containing a

substantial number of displaced workers, it will cooperate with the

recognized representative of each community and execute economic

development initiatives to help offset those impacts.

Initial program guidance for the community transition program was

first developed in the spring and summer of 1993, shortly after the

formation of the Department's Task Force on Worker and Community

Transition. In the intervening period, the community transition program

has evolved. This guidance reflects the changes necessary

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for the continued progress of the program. It reflects the work and

input of stakeholders as well as the staff of the Department's Office

of Worker and Community Transition (the Office). It replaces previous

guidance on community transition activities and should be used while

comments are being collected. The Office appreciates the assistance and

effort of Department field organizations, site contractors, and

representatives of the affected communities for their assistance in

developing this guidance.

II. Program Scope

A. General

Pursuant to section 3161 of the National Defense Authorization Act

for Fiscal Year 1993, the Department's community transition program is

designed to minimize the social and economic impacts of work force

restructuring at defense nuclear facilities by providing local impact

assistance to affected communities, 42 U.S.C. 7274h(c)(6). Specific

assistance programs are designed by the communities and the local

Department facilities affected by the downsizing. Over the past 3

years, the Department has employed an extensive process of stakeholder

and public involvement to shape policies concerning worker and

community transition. This process included national stakeholder

meetings on July 12-13, 1993, on November 16-17, 1993, on February 3-4,

1994, on May 25-26, 1994, on November 15-16, 1994, on April 20-21,

1995, on September 13-15, 1995, and on March 13-15, 1996, as well as

specific input provided by nine community transition focus groups. It

also responds to the recommendations made by the General Accounting

Office in its December 1995 report to the Secretary of Energy, ``Energy

Downsizing: Criteria for Community Assistance Needed.'' Impact

assistance is provided by funding Department field organization-

approved proposals for activities of Community Reuse Organizations

(CRO), Management and Operating contractors, and others.

B. Allowable Uses of Funding

1. Funds for community transition activities may be allocated for

approved programs and projects described in community transition plans

or in field project requests prepared by Department facilities for

activities funded outside the community transition plans.

2. In reviewing proposals or applications, the broadest range of

allowable uses of funds will be considered. However, because funding is

limited, and because other appropriations may be seen as the proper or

primary source to fund certain activities, various activities may only

be approved where exceptional circumstances would justify the decision.

These include:

a. Activities that could be funded from work force restructuring

funds, such as employee retraining;

b. Landlord responsibilities normally funded by the program office

with landlord responsibilities at the site, including preparing

personal property for disposal; decontamination and decommissioning of

land and facilities; maintenance (to the extent it is not passed on to

the tenant); environmental baseline-facility condition reports;

administrative activities such as appraisals, title searches and

environmental assessments; and

c. Off-site construction, infrastructure, or other capital

improvement projects.

3. If funding for the type of projects described in Section II.B.2,

above, is being considered, the Department field organization should

make early contact with the Office to determine whether the project can

be funded by appropriations and, if so, what justification will be

necessary.

C. Eligibility and Funding Recipients

1. General

Community transition funds will generally flow through a Department

field organization to the CRO or CRO-designee. For activities funded

outside the community transition plan, funds may be made available by

direct contract between the Department and another party, such as the

on-site contractor. Financial assistance to CROs will be provided in

accordance with the requirements applicable to grants or cooperative

agreements that are in 10 CFR Part 600.

2. Definition of ``Defense Nuclear Facilities''

Pursuant to section 3161 of the National Defense Authorization Act

for Fiscal Year 1993, ``defense nuclear facilities'' for the purposes

of community transition assistance include the following types of

facilities under the control or jurisdiction of the Secretary of

Energy: Atomic energy defense facilities involving production or

utilization of special nuclear material; nuclear waste storage or

disposal facilities; testing and assembly facilities; and atomic

weapons research facilities. Department facilities that have been

determined to be defense nuclear facilities for the purposes of section

3161 are listed in Appendix B.

3. CRO Selection Criteria

The communities surrounding each site may be represented by a

single CRO. The selection criteria applied by the Department field

organizations in order to designate a CRO include, but are not limited

to, the following:

a. The organization should be formed for the purpose of addressing

the economic impacts in the affected communities as a result of the

changes in the work force at a defense nuclear facility.

b. The organization should solicit and accept participation by a

reasonably representative cross section of public and private sector

interests.

c. The organization should have a reasonable process for soliciting

public input into formulation of a Community Transition Plan and any

major amendments to such a Plan.

D. Types of Assistance

1. Start-up Assistance for CROs

a. The Department field organizations should solicit applications

for financial start-up assistance for CROs in a manner which provides

for the maximum amount of competition feasible as set forth in 10 CFR

Part 600.

b. This is one-time assistance to support the initial functions of

a CRO including: Development of a public participation plan;

development of scopes of work for impact analyses and a community

transition plan; and development of a proposal for planning assistance.

c. Funding for start-up assistance usually does not exceed $100,000

and may be spent over two fiscal years. It may be applied for at any

time in the Department budget cycle, based on knowledge by the

Department field organization that work force reductions are likely to

occur within 18 months.

d. Application for the assistance should include information about

how area local governments, economic development organizations, labor,

and other key stakeholders will be involved with creating the CRO.

Award of start-up assistance does not commit the Department to funding

future CRO activities and projects.

2. Planning Assistance for CROs

a. Planning assistance for the CROs is intended to pay for

administrative costs and planning studies associated with the

development of a Community Transition Plan.

b. Planning assistance is expected generally to be in the range of

$250,000 to $500,000.

c. A planning assistance application should include the following

elements:

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(1) The purpose and need for community transition.

(2) A description of the CRO, including its membership, functions,

scope, and decisionmaking procedures.

(3) How the community transition plan will be developed. Where

appropriate, an analysis of socio-economic strengths, weaknesses,

opportunities and threats to the community should be included in the

scope of work for the planning effort.

(4) A program plan for utilization of the planning assistance

funds, including proposed scope of work and milestones.

(5) Required Federal grant application forms and financial

information, as specified by the Department field organization.

(6) A summary of the CRO-approved public participation plan which

includes discussion of access to meetings and records, community

involvement, fairness of opportunity for receipt of program benefits,

and avoidance of conflicts of interest.

(7) A discussion of CRO coordination with the applicable site, the

Site Specific Advisory Board, and regional planning and economic

development organizations and activities.

(8) Identification of any non-Department resources that will be

utilized in the planning phase of the program.

(9) Any proposed program or project activities that are requested

and proposed to be conducted prior to approval of the community

transition plan together with the justification required for program

and project assistance (see Sections II.D.4 and VI.C.3).

(10) Written designation of the CRO by the responsible Department

field organization.

3. Operational Assistance

a. This is assistance to fund administrative expenses of the CRO

beyond start-up and planning assistance.

b. Funding for this activity may vary based upon the CRO

organization and the degree to which the CRO is supported by other

funding sources. It is suggested that requests normally be part of the

Community Transition Plan and provide the appropriate information

requested for program and project assistance in Section II.D.4 as well

as a discussion of the steps the CRO is taking to become self-

supporting and a timetable for when the CRO will be self-supporting.

4. Community Transition Program and Project Assistance

a. The purpose of this assistance is to fund the activities deemed

most likely to reduce the community's dependence on the Department and

to mitigate the negative impacts on communities resulting from the

downsizing of defense nuclear facilities. Project assistance typically

will provide financial assistance for a comprehensive, multi-year

community transition program--generally a 3 to 5-year program. The

program may be based upon community needs and may incorporate an

analysis of the socio-economic strengths, weaknesses, opportunities,

and threats in the community transition plan. Components may include

programs conducted directly by the CRO, contract services, and

competitively-based financial assistance for economic development

activities. Types of programs that may be funded include small business

incubators, revolving loan funds, equity position, venture and risk

capital funding, marketing of excess Department property,

entrepreneurial development, technology transfer assistance, and

applicable training seminars. Inclusion of these types of programs in a

financial assistance award will generally require special provisions in

the financial assistance instrument. For example, if a CRO institutes a

revolving loan fund, the loan program should not exceed an appropriate

length of time (i.e., 5 years) and all interest and principal payments

must be returned to the Government. The financial assistance award

should contain appropriate guidance on repayments of loans and if

desired, allow for reauthorization of principal repayments to be used

for payment of other costs under the financial assistance award.

b. In the past, program and project assistance has generally been

in the range of $400,000 to $5 million per year at each site.

c. The specific format for requests for program and project

assistance will depend on the applicant. For CRO requested projects or

programs, the request should be included in the Community Transition

Plan as described in Section VI. For funds to be managed by the site

independent of the CRO, the site shall submit a letter request to

Headquarters signed by the Field Manager which contains information

similar to that requested for prioritized projects submitted by the

CRO, together with a letter from the CRO with the CRO's comments.

d. The Lobbying Disclosure Act of 1995, Public Law 104-65, Dec. 19,

1995, as amended by Public Law 104-99, Jan. 26, 1996, prohibits the

Government from awarding financial assistance to non-profit

organizations described in section 501 (c) (4) of the Internal Revenue

Code of 1986 which engage in lobbying activities as defined by the Act.

Therefore, such organizations are not eligible to receive awards of

financial assistance.

III. Roles and Responsibilities

A. The Secretary of Energy is responsible for the overall program

direction and has final approval of all community transition funding

decisions.

B. The Director, Office of Worker and Community Transition is

responsible for the overall management of the community transition

program, including the following:

1. Authorizes actions, within approved funding levels, to mitigate

impacts of reconfiguration, downsizing, and closing of Department

facilities.

2. Establishes principles, policies, and procedures to implement

the Department's community transition mission.

3. Develops the Department-wide community transition budget,

recommends the Department field organization budget levels for

community transition, and establishes the criteria to be used for

community transition program funding levels at qualifying sites.

4. Determines allowable uses of Worker and Community Transition

program funds within legislatively-mandated parameters.

5. Recommends, to the Secretary, approval or denial of requests for

community transition assistance, after consultation with other

Department elements as necessary.

6. Ensures coordination of the Community Transition Plan with the

work force restructuring plans at the site.

7. Provides liaison among other program and staff offices in

Headquarters for community transition issues.

8. Conducts program reviews of field implementation of the

community transition program.

C. Department Field Organizations are responsible for the day-to-

day administration of the community transition program. This includes

responsibility for the following:

1. Working within their communities to designate the local CRO in

order to perform the roles and responsibilties as described in Section

III.D.

2. Assuring that CROs are entities formed for the purpose of

addressing the

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economic impacts in the affected communities as a result of the changes

in the work force at a defense nuclear facility. CROs may be local

governments, corporations or affiliations of communities and interested

stakeholders.

3. Soliciting applications for financial assistance and approving

the CRO for sites under their jurisdiction; assuring that all

interested groups are afforded the opportunity to participate in the

CRO.

4. Assuring that the provision in Appendix D concerning the

standard of conduct requirements be included in each financial

assistance award for economic development activities.

5. Assuring that the Department's community transition policies and

guidance are carried out in a spirit of cooperation and openness.

6. Integrating the requirements of the community transition program

with the requirements of other programs and activities at their sites

and assuring that necessary support activities are identified and

budgeted for.

7. Providing planning guidance to the CROs for program plans and

reviewing and approving CRO-developed community transition plans.

8. Resolving conflicting proposed uses of the Department's assets

under its jurisdiction.

9. Integrating community transition locally so that it incorporates

the work and plans of the CRO with other community transition

activities, if any, proposed by the site.

10. Consulting with American Indian Tribal Governments to assure

that tribal rights and concerns are considered prior to the Department

taking actions, making decisions or implementing programs that may

affect tribes.

11. Publishing financial assistance award announcements publicly to

allow maximum participation.

12. Assuring that there is no financial assistance or loan awarded

to any non-profit organizations described in section 501(c)(4) of the

Internal Revenue Code of 1986 which engages in lobbying activities as

defined in the Lobbying Disclosure Act of 1995, as amended.

D. Community Reuse Organizations serve to implement community

transition activities. In this capacity the CRO will:

1. Coordinate local community transition planning efforts that

address Department-related impacts.

2. Include a broad representation of the affected communities, with

opportunity for involvement given to people and groups such as

individual residents; representatives of community-based organizations;

representatives of business, educational, and financial institutions;

site workers and their labor organizations; local government officials;

established economic and community development organizations; public

interest groups; environmental groups; diversity groups; and federally-

recognized American Indian Tribes.

3. Develop and submit Community Transition Plans to the appropriate

Department field organization.

4. Receive Department funding and participate in the management of

community transition projects.

5. Coordinate CRO activities with Site Specific Advisory Boards

(SSAB) at Department facilities, particularly with regard to future

site planning.

IV. Program Planning

A. General

Future funding for all activities other than start-up and planning

assistance is expected to be requested through a Community Transition

Plan (or a letter request for Department field organization

activities). Table 1 describes the activities expected to occur at each

step. The intent of this process is to provide objectivity in the

selection of project and program activities to be supported. The

following paragraphs will describe the major activities in some detail.

B. Development of the Community Transition Plan

Department field organizations should provide guidance to the CROs

to assist them in developing a Community Transition Plan. Based upon

this guidance, the CROs should prepare a Community Transition Plan for

funding.

C. Department Field Organization and Office Reviews

Upon completion of the CRO Community Transition Plan and any

Department field organization projects, a field review of the Community

Transition Plan and an Office review of both the Community Transition

Plan and any site-sponsored projects should take place. The intent is

for the Department field organization and the Office to jointly

identify any needed revisions as soon as possible, thereby minimizing

multiple requests for changes. At the end of the review period, there

should be a plan ready for recommendation with a very high probability

of approval by the Office.

D. Economic Development Administration in the Department of Commerce

and the Peer Review Board

Reviews by the Economic Development Administration in the

Department of Commerce and the Peer Review Board should use the

criteria in Section V to compare and assess projects and programs. The

recommendations may be provided to the Office of Worker and Community

Transition for their consideration in the final determinations of

program funding.

E. Office of Worker and Community Transition Review and Decisions

The Office will review the submitted plans, the peer review

comments, and the independent review from the Economic Development

Administration of the Department of Commerce. Based upon these inputs,

and the Office staff review, final funding levels for the fiscal year

will be recommended. After Secretarial approval and appropriate

notifications, funds will be transferred to the appropriate Department

field organizations for implementation of the approved program.

Table 1.--Community Transition Funding Activities

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Step Activity

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(1)...................... CRO develops Community Transition Plan based

upon planning guidance from the Department.

If appropriate, local Department field

organization develops project descriptions

for any Department facility/activities to be

requested from the Office.

(2)...................... CRO submits Community Transition Plan to the

Department field organization.

(3a)..................... Department field organization conducts review

of Community Transition Plan and assists CRO

in refining proposal.

(3b)..................... Office concurrently assists development of

the Community Transition Plan and any

projects from the Department field

organization.

(4)...................... Department field organizations submit

community transition plan and field project

requests to the Office for review and

approval.

(5)...................... Economic Development Administration and the

Peer Review Board evaluate CRO Community

Transition Plans and field projects.

[[Page 5809]]

(6)...................... Peer Review Board Report and Economic

Development Administration Reports are

submitted to the Office.

(7)...................... The Office conducts internal review.

(8)...................... The Office makes funding award decision.

(9)...................... The Office authorizes release of funds into

Department field organization financial

plan.

(10)..................... Community transition funds are available to

recipients.

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V. Evaluation Criteria for Review of Projects and Programs

The following factors will be used to evaluate all project and

program funding requests in Community Transition Plans:

A. Projected job creation (communities should seek to create at

least one job for each $10,000 to $25,000 in Federal funding received,

leveraging those funds to attract other private and public funds).

B. Projected job creation for workers affected by downsizing.

C. Viability of project to induce investment/growth in production

of goods and services for which the community may have or be able to

develop a comparative economic advantage.

D. Ability to reduce the region's dependence on the Department.

E. Consistency with the identified strengths of the region.

F. Past performance of the applicant, if any.

G. Amount of local participation in the project, either financially

or in terms of coordinated services.

H. Demonstrated cooperation with regional or state economic

development efforts.

I. Ability of project to become self-sufficient.

J. Linkage of project to site cost reductions through transfer of

site equipment, facilities or technologies.

K. Other unique factors such as innovative features of the proposed

project, such as matching funds.

VI. Community Transition Plans

A. Purpose

1. The Community Transition Plan describes the overall strategies

and, within each strategy, the actions proposed by the communities to

respond to the changing missions at a Department facility. Where

appropriate, it also describes the proposed programs, projects and

estimated funding requested from the Department. It is the overall

framework and the rationale for the local response to the downsizing at

the Department facility.

2. The Plan serves an integrating function, building upon other

existing community and facility planning efforts in the region. It

should describe those efforts, the lessons learned from them, and

should focus on the additional, supplemental efforts the community

believes are necessary and useful to respond to the changes at the

Department facility. It should not duplicate other planning efforts,

but would afford the community an opportunity to highlight innovations

to address the impacts of downsizing.

B. General

1. Initial planning grants from the Department should be used by

CROs to prepare and submit to the Office a Plan for anticipated

community transition activities. This Plan should be submitted through

and be approved by the appropriate Department field organization.

2. While each community faces unique transition challenges and will

develop a plan specific to its situation, there are common topical

areas that should be addressed in all Plans. The following paragraphs

offer guidance on what the Office considers critical components of a

Community Transition Plan. These are elements to be addressed in the

Plan, not necessarily an outline of the developed Plans. The continued

allocation of the Department's limited financial and other available

resources will be contingent upon the completion of the Plan and its

contents. Both short-term and long-term objectives may be included.

C. Community Transition Plan Components

1. Planning Analysis

a. An analysis should be performed to establish the primary and

secondary community impacts likely as a result of planned site

restructuring. From a baseline established from local information

sources, project the likely impacts on such primary factors as net job

loss, changes in unemployment, loss of wages and disposable income, and

business closings. Secondary impacts could include such factors as

decreases in taxes and other user fees, loss of business and sales

volumes, decreases in property values and other factors. Impacts on

education, cultural activities, recreation, the environment and other

socio-economic factors should also be considered. From an analysis of

these impacts, develop a set of issues.

b. A critical part of the Community Transition Plan is the analysis

of strengths, weaknesses, opportunities and threats (SWOT analysis) to

the community. This can be performed with planning assistance funds, or

existing studies can be used. With the SWOT analysis as a framework,

set out an overall vision for the community and identify the programs

and projects to be established, including the degree to which the

programs and projects address the issues.

2. Stakeholder Involvement

Stakeholders should have the opportunity to participate in the

planning process. Identify stakeholders providing input to the Plan,

describe method of input, and common areas of interest. A communication

strategy should also be a component of insuring proper representation

and community input into the planning and implementation process. This

should also include CRO coordination with the applicable site and other

groups, such as: any Site Specific Advisory Boards; regional planning

and economic development organizations and activities; labor; the

business community; academic communities; and American Indian Tribal

Governments.

3. Prioritized Projects

Develop a list of prioritized projects or programs based on the

above considerations with an overall project budget and schedule for

completion of each. The following items are suggested topics for

discussion for each project:

a. The primary goal of transition initiatives is the creation of

jobs through the retention, expansion, and creation of businesses, and

through other measures, to offset the economic impacts of the

Department's work force restructuring actions. The Plan should identify

likely benefits to workers displaced by the Department and the area's

work force in general.

[[Page 5810]]

b. Amount, type, timing, and continuity of funding available from

non-Department sources such as the U.S. Department of Labor's Job

Training Partnership Act and the U.S. Department of Commerce's Economic

Development Administration. Also include any state and local funding,

and any private development sources, such as venture capital, financial

institutions, revenue bonds, seed capital, revolving loans and other

private funds. The use of these funds should be set out relative to any

Department funding provided.

c. Coordination with other community programs.

d. Performance measures for each project.

e. A proposed scope of work, timeline, and reporting schedule

(generally, quarterly) of proposed activities, accomplishments, and

expenditures.

f. Required Federal grant application forms and financial

information, as specified by the Department field organization.

g. Any anticipated preferences or non-traditional competition

elements of the program, and their relationship to program objectives.

h. A discussion of CRO coordination with units of Federal, state,

local, or tribal governments. Demonstration that proposed projects will

augment and not duplicate current community efforts.

I. Plans, if any, to support CRO operating and program costs

following completion of the project grant (e.g., self-sustaining

mechanisms, local or non-Department support, revenue/income generation,

future Department funding, or transfer of programs to other

organizations).

j. Identification of any time-sensitive opportunities, or other

pertinent background information.

k. If multi-year funding is anticipated, show how this year's

increment related to prior-year activities and what will happen if

future year funding is reduced or eliminated.

VII. Performance Measures

A. Purpose

1. Performance measures represent a mechanism that the CROs and the

Department can use to monitor performance. They do this by providing a

means for: (1) determining how well a project is being executed; (2)

indicating when corrective actions are required; and (3) documenting

success.

2. Performance measures establish a mechanism for program

assessment. It is suggested that the CROs use the results of their

performance measures for self assessment purposes. The Department field

organization and Headquarters staff should use the same results for

purposes of external oversight.

3. Performance measures should be used to allow the Department to

provide objective and defensible indications to the Congress and to the

American people that the Department's economic development program is

effective.

4. Finally, since the intent of performance measures is to evaluate

program execution, performance measures need not be developed for

start-up or planning assistance.

B. Guidance

1. The CROs are responsible for developing performance measures

based on this guidance and on their unique circumstances, goals, and

objectives. The final measures should be negotiated with the

appropriate Department field organization and, ultimately, approved by

the Office.

2. Many CROs may have similar objectives. The Office encourages,

but does not require, developing consistent performance measures in

such cases and also encourages sharing best-practices and lessons-

learned to the maximum extent possible.

3. Performance measures should not focus on minor aspects of

performance, rather, they should comprehensively measure critical

aspects of performance for any enterprise.

4. Performance measures and objectives should not be so difficult

that they cannot be achieved through a reasonable amount of effort, nor

shall they be excessively easy to achieve.

5. Performance measures shall be periodically assessed by the CROs

and the results reported to the Department field organization and the

Office.

6. When a performance measure is no longer providing useful

information, it should be eliminated or replaced.

7. Performance measures shall be measurable in a numerical fashion

to the maximum extent possible. Where numeric measurement is not

possible, performance measures shall be evaluated against a clearly

defined set of criteria.

8. In cases where grant requests are small (i.e., less than

$300,000), a less stringent requirement for performance measures may

apply.

9. On a quarterly basis, the CROs should submit a progress report

to Department Headquarters via the appropriate Department field

organization. The quarterly progress reports should contain, among

other things, updated information on the CRO's performance measures.

The progress report format may be found in Appendix C.

C. Model

Per the above guidance, the individual CROs should be tasked with

developing performance measures for their particular enterprise. The

Office recognizes that:

1. The various CROs will have different missions, objectives, and

priorities; the CROs are best equipped to determine what constitutes a

good measure of performance for their particular situation.

2. The CRO missions are dynamic, and, therefore, their objectives

may change from time-to-time. As a consequence, what constitutes a good

performance measure today may not be appropriate tomorrow; therefore,

the CROs should be allowed the flexibility to alter their performance

measures, with the Office's concurrence, to more closely align with

changing missions and objectives.

3. The CROs should have latitude in regard to the substance and

nature of their performance measures. However, it is suggested that

they follow generally recognized principles for developing and

measuring performance. By employing a performance measurement system,

the Department will be able to assess and describe the effectiveness of

the program. This will assist in determining appropriate levels for the

program in future years and will help each site and each CRO assess the

effectiveness of its program.

D. Areas to Address

The following paragraphs delineate the types of issues that should

be considered when developing a performance measurement program.

1. Job creation: The act of creating jobs that did not previously

exist in a defined marketplace, especially jobs that will assist

displaced workers from the affected site. Communities should seek to

create at least one job for each $10,000 to $25,000 in Federal funding

received, leveraging those funds to attract other private and public

funds.

2. Job retention: Holding in place the existing work force and

providing substitute employment for at-risk or displaced workers within

a defined geographic area.

3. Regional development: Enhancement of the attributes of a

geographic area to promote the commonly-held and understood assets of

that region.

4. Business start-ups: New commercial or industrial enterprises,

legal entities, partnerships, etc.

[[Page 5811]]

5. Expansion of existing businesses: The ability to hire more

workers and to increase the demand for goods and services ultimately

stimulating the economy (e.g., increase revenues, broaden the tax

base).

6. Economic diversification: Any activity within a defined

geographical area that makes the area less dependent upon Department

business.

7. Training: Providing skills and classes necessary to prepare

workers to maintain the skills required to continue in one's current

position or alternative job.

8. Commercialization: The act of making assets (e.g., technologies,

use of facilities or equipment) under Department control available for

third party use or for use by the M&O contractor for non-Department

business activities.

9. Facility reuse: The reuse of Department facility real estate and

fixtures including buildings, land, and facilities that are not needed

for the Department's traditional missions.

10. Leveraging: The ability of the CRO to commit non-Department

resources as a match for Department funds requested. Leveraging should

be indicated as a ratio of non-Department to Department resources,

e.g., if a CRO requests a $100,000 grant and commits $50,000 in non-

Department matching funds, the leveraging factor would be 1:2.

11. Matching funds: Defined as non-Department resources committed

to CRO programs. Matching funds may include the following:

a. Cash--funds committed to projects to pay for various program

activities, including personnel, equipment, materials, supplies,

facilities, etc.

b. In-kind--contributions other than cash committed to program

activities. In-kind contributions may include personal time, donated

facility space, equipment loans or value of discounted services.

12. Personal property transfer: The transfer of Department-

controlled equipment, supplies, and intellectual property to another

entity--can involve transfer of title, licensing or leasing of the

property.

13. Community relations: Broad-based solicitation and encouragement

of public awareness and participation in decision-making processes.

14. Administration, Outreach and Finance: Business systems and

processes incorporated to manage the development and implementation of

the community transition program, including community involvement and

fiscal responsibilities (e.g., contractual compliance, auditing, the

raising and expending of monies, granting credit, and making

investments).

VIII. Reviews

A. Financial Management Reviews

1. Generally, the Department field organizations should apply the

requirements of Departmental financial assistance policies and

procedures which are set forth in 10 CFR Part 600. Those sections of

the CFR provide guidance in the various aspects of financial assistance

management including general administrative requirements, reports and

records, making changes in the grant scope, and auditing requirements.

2. Purpose

Careful monitoring of program implementation is necessary due to

the level of public involvement in community transition activities. The

Office is responsible for establishing appropriate standards to assure

proper accounting for the use of community transition assistance funds.

3. Procedures

a. Conduct financial management reviews of Department field

organization community transition programs on an as-needed basis.

Specific areas of review are: Financial reporting; accounting records;

internal control; budget control; allowable cost; source documentation;

cash management; and project accounting.

b. The Office should track completed grants and close-out reports

that address audit findings.

B. Program Reviews

The Office plans to conduct programmatic reviews of Department

field organizations to assess accomplishments, determine progress and

identify issues needing study. These reviews should be performed on a

frequency and at locations as determined by the Office Director, and

should be coordinated with the management of the Department field

organization being reviewed. The Office should not review the CROs,

except when accompanying a Department field organization during its

review. It is the general goal of the Office to review each Department

field organization that is implementing a community transition program

at least once every year.

Appendix A

Office of Worker and Community Transition Contacts

Director:

Bob DeGrasse....................................... 202-586-7550, FAX 586-8403.

Deputy Director:

Terry Freese....................................... 202-586-5907, FAX 586-8403.

Program Communications:

Pat Parizzi........................................ 202-586-7550, FAX 586-8403.

Work Force Planning:

Lyle Brown......................................... 202-586-0431, FAX 586-1540.

Laurel Smith....................................... 202-586-4091, FAX 586-1540.

Debby Swichkow..................................... 202-586-0876, FAX 586-8403.

Work Force Restructuring:

Terry Freese....................................... 202-586-5907, FAX 586-8403.

Labor Relations:

Lyle Brown......................................... 202-586-0431, FAX 586-1540.

Deborah Sullivan................................... 202-586-0452, FAX 586-1540.

Community Transition:

Bob Baney.......................................... 202-586-3751, FAX 586-1540.

Mike Mescher....................................... 202-586-3924, FAX 586-1540.

Laurel Smith....................................... 202-586-4091, FAX 586-1540.

Debby Swichkow..................................... 202-586-0876, FAX 586-8403.

Public Participation:

Laurel Smith....................................... 202-586-4091, FAX 586-1540.

Natasha Wieschenberg............................... 202-586-5830, FAX 586-1540.

[[Page 5812]]

Community Transportation Field Contacts

Paul Dickman, Albuquerque Operations Office............ 505-845-4313, FAX 845-5508.

Gary Stegner, Fernald Environmental Management Site.... 513-648-3153, FAX 648-3073.

Ken Osborne, Idaho National Engineering Laboratory..... 208-526-0805, FAX 526-8789.

Dave Porco, Miamisburg Area Office..................... 513-865-3649, FAX 865-4489.

Darwin Morgan, Nevada Operations Office................ 702-295-3521, FAX 295-0154.

Bob Hamilton, Oak Ridge Operations Office.............. 423-576-7723, FAX 576-6363.

Gene Pressoir, Pinellas Area Office.................... 813-541-8062, FAX 541-8370.

Mike Dabbert, Portsmouth Gaseous Diffusion Plant....... 614-897-5525, FAX 897-2982.

Mark Coronado, Richland Operations Office.............. 509-376-3502, FAX 376-8142.

Mike Bolles, Rocky Flats Office........................ 303-966-2473, FAX 966-6633.

Sam Glenn, Savannah River Operations Office............ 803-725-2425, FAX 725-1910.

Appendix B.--Listing of Defense Nuclear Facilities

The list below reflects facilities receiving funding for Atomic

Energy Defense activities of the Department of Energy, with the

exception of activities under Naval Reactor Propulsion. It is

recognized that these facilities have varying degrees of defense

activities, ranging from a total defense dedication to a very small

portion of their overall activity. This may cause certain

difficulties in implementing the intent of the section 3161

legislation. Regardless, this listing will be used by the Office for

possible application of funding received for defense worker

assistance and community transition purposes.

Kansas City Plant

Pinellas Plant

Mound Facility

Fernald Environmental Management Project Site

Pantex Plant

Rocky Flats Environmental Technology Site, including the Oxnard

Facility

Savannah River Site

Los Alamos National Laboratory

Sandia National Laboratory

Argonne National Laboratory

Brookhaven National Laboratory

Lawrence Livermore National Laboratory

Oak Ridge National Laboratory

Nevada Test Site

Y-12 Plant

K-25 Plant

Hanford Site

Idaho National Engineering Laboratory

Waste Isolation Pilot Project

Portsmouth Gaseous Diffusion Plant

Paducah Gaseous Diffusion Plant

Appendix C.--Quarterly Progress Report: (Date)

Project Title: (a name selected by the site for the specific

activity or activities--e.g.; incubator loan fund; entrepreneurial

training. The site and the CRO will determine the best method for

project definition, consistent with the way funds were requested and

approved.

DOE Site Contact: (name of DOE Field or Area Office point of

contact)

CRO Contact: (name of CRO point of contact [if different from the

project manager])

Project Manager: (name, address, and phone number of the primary

applicant of the project under review)

Project start date: (date funding recipient is authorized to proceed

by the field office)

Expected completion date: (Date funding recipient is expected to

complete the project)

Description of project: (a short narrative description of the

project.)

Funding History: (a record of the project funding. Committed means

funds released to a field organization by the Office of Worker and

Community Transition [the Office]; obligated means monies released

to the CRO or other recipient by the field organization; and costed

means expended by the CRO or other recipient.)

------------------------------------------------------------------------

Status of the office funds Cumulative amount

------------------------------------------------------------------------

Committed by the Office...................

Obligated by the field organization.......

Costed by the recipient...................

Unobligated by the field organization.....

------------------------------------------------------------------------

For the Office funding, identify the cumulative amount committed by

the Office; the cumulative amount obligated by the field office; the

amount unobligated; and the amount costed by the recipient. For

leveraged funds, identify each source and the cumulative amount from

that source.

------------------------------------------------------------------------

Funding source Cash In-kind

------------------------------------------------------------------------

------------------------------------------------------------------------

Accomplishments: (project outcomes to-date: report on

performance measures identified and jointly agreed to by DOE field

and the CRO)

Performance Measures

----------------------------------------------------------------------------------------------------------------

Scheduled Actual Progress to-date (or to the end

Category date Projected outcome date of the project)

----------------------------------------------------------------------------------------------------------------

(e.g., create new businesses).... 9/94 Start-up 2 12/94 3 new businesses.

businesses.

(e.g., create new jobs).......... 9/94 20 jobs............. 10/94 30 jobs.

----------------------------------------------------------------------------------------------------------------

Date (Joint signature) DOE Field Office

Date (Joint signature) CRO

Appendix D.--Requirement for Financial Assistance--10 CFR Part 600

Section 600.142 of 10 CFR Part 600 contains a requirement for

recipients of financial assistance to maintain written standards of

conduct governing the performance of employees engaged in the award

and administration of contracts. Since organizations involved in

economic development activities may engage in activities other than

contracting, in which potential conflicts of interest may arise

(e.g., providing loans to local businesses), the following provision

should be included in all financial assistance awards to such

entities:

The requirements of 10 CFR 600.142 should be applied to the

activities of employees, agents and consultants of financial

assistance recipients whenever these activities involve decisions

about the award of DOE funds, regardless of the type of agreement or

arrangement to be supported by DOE funds (e.g., lease, loan,

contract, etc.).

[FR Doc. 97-2933 Filed 2-6-97; 8:45 am]

BILLING CODE 6450-01-P